SKF ABSKFRY -0.59%75 Operating Margin % is 12.08% as of Mar. 2026, which is 12% above its 10-year median of 10.76. GuruFocus rates SKFRY with a GF Score™ of 75/100 and a GF Value™ of $20.36 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 3,038 Industrial Products companies, SKF AB ranks better than 59.38% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SKF AB's Operating Income for the
three
months ended in Mar. 2026 was $284 Mil. SKF AB's Revenue for the
three
months ended in Mar. 2026 was $2,348 Mil. Therefore, SKF AB's Operating Margin % for the quarter that ended in Mar. 2026 was 12.08%.
Warning Sign:
SKF AB operating margin has been in a 5-year decline. The average rate of decline per year is -4.1%.
The historical rank and industry rank for SKF AB's Operating Margin % or its related term are showing as below:
SKFRY'
s Operating Margin % Range Over the Past 10 Years
Min: 7.51 Med: 10.76 Max: 12.62
Current: 8.4
SKFRY's Operating Margin % is ranked better than 59.38% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs SKFRY: 8.40
SKF AB's 5-Year Average Operating Margin % Growth Rate was -4.10% per year.
SKF AB's Operating Income for the
three
months ended in Mar. 2026 was $284 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $802 Mil.
SKF AB (OTCPK:SKFRY) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
SKF AB Operating Margin % Related Terms
SKF AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for SKF AB's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SKFRY vs SNA, RBC, LECO: Operating Margin % Comparison
For the Tools & Accessories subindustry, SKF AB's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SKF AB Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, SKF AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SKF AB's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
SKF AB's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SKF AB (SKFRY) has a Operating Margin % of 12.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SKF AB and its competitors. This is 12% above median its historical median of 10.76. Over the past decade, SKF AB's Operating Margin % has ranged from 7.51 to 12.62. According to the industry distribution chart, SKF AB ranks #1234 out of 3038 companies in the Industrial Products industry, placing it in the top 40.6%.
Is SKF AB's Operating Margin % too high?
SKF AB's current Operating Margin % of 12.08% is 12% above median its 10-year median of 10.76. Over the past 10 years, this metric has ranged from a low of 7.51 to a high of 12.62. The Industrial Products industry median Operating Margin % is 6.53. SKF AB's value of 12.08% is 85% above this industry median. Based on the distribution chart, SKF AB ranks #1234 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, SKF AB has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SKF AB's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, SKF AB ranks #1234 out of 3038 companies for Operating Margin %. This puts SKF AB in the upper half of its industry. The industry median Operating Margin % is 6.53. SKF AB's value of 12.08% is 85% above this benchmark. Historically, SKF AB's own Operating Margin % has ranged from 7.51 to 12.62 over the past decade. While the company's 10-year median is 10.76 vs. the industry median of 6.53, SKF AB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SKF AB's current Operating Margin % of 12.08% is 85% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on SKF AB and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SKF AB's current Operating Margin % is 12.08%, which is 12% above median its own 10-year median of 10.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SKF AB stock overvalued right now?
Based on GuruFocus' analysis, SKF AB (SKFRY) is currently considered Modestly Overvalued. The stock's GF Value™ is $20.36, compared to a current price of $25.43 — trading 24.9% above its estimated fair value. The current Operating Margin % is 12.08%, which is 12% above median its 10-year median of 10.76 and 85% above the Industrial Products industry median of 6.53. SKF AB's overall GF Score™ is 75/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For SKF AB (SKFRY), the current Operating Margin % is 12.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SKF AB (SKFRY) Overvalued in 2026?
Based on GuruFocus' analysis, SKF AB stock appears to be overvalued.
The current stock price of $25.43 is trading 24.9% above its estimated GF Value™ of $20.36.
GuruFocus considers SKF AB to be Modestly Overvalued.
Key valuation signals for SKFRY:
Operating Margin %: 12.08% (12% above median its 10-year median of 10.76)
GF Value™: $20.36 vs. price of $25.43 (24.9% above fair value)
Industry Position: 85% above the Industrial Products median (#1234 of 3038)
No single metric tells the full story. See the SKFRY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SKF's history goes back to the first major patents in ball bearings, when in 1907 it was the first to patent the self-aligning ball bearing. SKF and Schaeffler Group are the top two global ball bearing suppliers, followed by Timken, NSK, NTN, and JTEKT. Combined, these six companies supply about 60% of the world's ball bearings. However, most of them have sector niches, as ball bearings for industrial purposes are engineered for specific applications. SKF is based in Sweden and has a global manufacturing footprint of 106 sites and about 17,000 global distributor locations. The firm operates under two segments: industrials, with a fairly fragmented customer base; and automotive, which is the opposite, with a concentrated customer base including the likes of Tesla.
75GF Score
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